Correlation Between Femasys and California-Engels

Can any of the company-specific risk be diversified away by investing in both Femasys and California-Engels at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Femasys and California-Engels into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Femasys and California Engels Mining, you can compare the effects of market volatilities on Femasys and California-Engels and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Femasys with a short position of California-Engels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Femasys and California-Engels.

Diversification Opportunities for Femasys and California-Engels

0.0

Correlation Coefficient

Femasys  California-Engels

Pay attention - limited upside

The 3 months correlation between Femasys and California-Engels is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Femasys and California Engels Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on California Engels Mining and Femasys is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Femasys are associated (or correlated) with California-Engels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of California Engels Mining has no effect on the direction of Femasys i.e., Femasys and California-Engels go up and down completely randomly.

Pair Corralation between Femasys and California-Engels

If you would invest  107.00  in Femasys on December 22, 2024 and sell it today you would earn a total of  53.00  from holding Femasys or generate 49.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	93.75%
Values	Daily Returns

Femasys  vs.  California Engels Mining

Femasys

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Femasys are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak primary indicators, Femasys showed solid returns over the last few months and may actually be approaching a breakup point.

California Engels Mining

Risk-Adjusted Performance

Very Weak

Over the last 90 days California Engels Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, California-Engels is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Femasys and California-Engels

The main advantage of trading using opposite Femasys and California-Engels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Femasys position performs unexpectedly, California-Engels can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in California-Engels will offset losses from the drop in California-Engels' long position.

The idea behind Femasys and California Engels Mining pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.